Fortress reports 20 per cent increase in base quarterly dividend
Fortress Investment Group has reported a 20 per cent increase in base quarterly dividend to USD0.06 per dividend paying share, effective for the fourth quarter of 2012 and full year 2013.
Fortress also repurchased 51.3 million dividend paying shares at a price of USD3.50 per share, representing approximately 10 per cent of dividend-paying shares outstanding.
Assets under management totalled USD53.4bn as of 31 December 2012, an increase of four per cent from the third quarter of 2012 and 22 per cent from the fourth quarter of 2011
GAAP net income totalled USD222m and USD219m for the fourth quarter and year ended 31 December 2012, respectively; GAAP book value per share totalled USD2.60 as of 31 December 2012
Fortress Group’s pre-tax distributable earnings (DE) of USD107m and USD278m for the fourth quarter and year ended 31 December 2013, respectively, compared to pre-tax DE of USD50m and USD242m for the fourth quarter and year ended 31 December 2011, respectively
Pre-tax DE per dividend paying share of USD0.20 and USD0.52 for the fourth quarter and year ended 31 December 2012, respectively, compared to pre-tax DE per dividend paying share of USD0.09 and USD0.46 for the fourth quarter and year ended 31 December 2011, respectively
Net cash and investments totalled USD2.48 per dividend paying share as of 31 December 2012, up from USD2.17 per dividend paying share as of 31 December 2011
Fortress Group raised USD1.5bn of capital across alternatives businesses in the fourth quarter, bringing total alternative capital raised in 2012 to USD6.7bn. The company also recorded USD0.2bn of net client outflows for Logan Circle in the fourth quarter, bringing total net client inflows in 2012 to USD5.7bn.
Net fourth quarter 2012 returns totalled 4.2 per cent in the Drawbridge Special Opportunities Fund, 6.0 per cent in the Fortress Macro Funds and 9.5 per cent in the Fortress Asia Macro Funds, with net full year 2012 returns of 17.9 per cent, 17.8 per cent and 21.2 per cent, respectively
Private equity fund valuations increased 3.9 per cent during the quarter, and 25.4 per cent in 2012
Net annualised inception-to-date IRRs through year end for the Credit Opportunities Fund and Credit Opportunities Fund II totalled 26.9 per cent and 18.5 per cent, respectively. 13 of 15 Logan Circle strategies outperformed their respective benchmarks in the fourth quarter and 14 of 15 strategies outperformed respective benchmarks in 2012.
Subsequent to year end, Fortress Group raised USD764m of permanent equity capital for Newcastle Investment Corp.
“We set and achieved aggressive objectives for 2012, and broad-based momentum built into the close of the year and carried into 2013,” says Randal Nardone, interim chief executive officer. “Our fourth quarter distributable earnings were the highest we have recorded in two years, and we believe only begin to reflect the potential of our company. Investment performance, the most important driver of our success, was outstanding across all of our businesses in 2012, and early 2013 returns in our main Liquid Markets funds have built further on 2012 results. Our strong performance has contributed to robust capital raising, with commitments from new and existing investors totalling USD6.7bn for 2012, and over USD1.6bn in the first two months of 2013. We are pleased with our performance to date and optimistic about our prospects looking ahead.”
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